iQIYI Inc
NASDAQ:IQ
iQIYI Inc
iQIYI Inc., often referred to as the "Netflix of China," emerged from the bustling digital marketplace of Beijing in 2010. It was founded by Gong Yu under the nurturing auspices of Baidu Inc., and it represents an intricate weave of technology, entertainment, and culture deeply rooted in the Chinese market. iQIYI operates as an online video platform offering a vast library that boasts films, television dramas, and original programming tailored to the varied tastes of its audience. The company's ecosystem is a symphony of algorithms and creative content designed to captivate viewers. By leveraging cutting-edge technology to personalize user recommendations, iQIYI ensures its subscribers are engaged and returning, thus creating a loyal consumer base.
The heart of iQIYI’s revenue engine lies in its subscription model, where users pay a monthly fee for ad-free content and premium offerings. This subscription revenue is complemented by advertising income, with businesses eager to tap into iQIYI’s extensive user network. Additionally, the company has explored ancillary revenue streams such as gaming, merchandising, and live streams, which dovetail seamlessly into its core offerings. By combining a strategic blend of free, ad-supported content with subscription-based options, iQIYI effectively balances audience expansion with premium monetization. This duality not only strengthens its market position but also fortifies its efforts in producing high-quality, exclusive content—a crucial differentiator in a competitive landscape.
Earnings Calls
In Q4, iQIYI faced a decline in total revenues to CNY 6.6 billion, down 14% year-over-year, with membership services sliding 15% to CNY 4.1 billion due to reduced content. However, a recovery in premium content is expected to enhance subscriber growth. The company aims to grow membership revenue by increasing the share of top-tier content and driving advertising revenue through enhanced mini drama offerings. Looking ahead, iQIYI targets expanding its presence in new markets and sustaining growth with increased investments in original content and marketing.
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Thank you for standing by, and welcome to the iQIYI's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to Ms. Chang Yu, IR Director of the company. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining iQIYI's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. The company's results were released earlier today and available on the company's Investor Relations website at ir.iqiyi.com.
On the call today are Mr. Yu Gong, our Founder, Director and CEO; and Mr. Jun Wang, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Youqiao Duan, Senior Vice President of our Membership Business; and Mr. Xianghua Yang, Senior Vice President of Movies and Overseas Business. Mr. Gong will give a brief overview of the company's business operations and highlights, followed by Jun, who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session.
Before we proceed, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations and potential risk and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. IQIYI does not undertake any obligation to update any forward-looking statements, except as required under applicable law.
I will now pass on to Mr. Gong. Please go ahead.
Hello, everyone, and thank you for joining us today. Starting from late November, we have observed a significant rebound in business performance across multiple metrics including net additions of subscribing members and user time spent, along with a reinforced leading position in the total market share. according to data.
This was boosted by the robust comeback of our top-tier content. In just the 3 months, 2 of our highly popular gamers, and Drifting Away surpassed 10,000 in popularity in and for the and reliable leadership in the
We also enhanced our supply of premium female-oriented content, which is also one of our key content categories with more in exceeding 9,500 and last time in winter exceeding 9,000 in popularity index.
Alongside the strong return of our premium video content, we have made breakthrough in the mini drama space. Now carries selection of over 10,000 titles, we have also revamped our products to improve user experiences. On top of that, we have upgraded our ad placement system to more effectively monetize the growing traffic of mini dramas.
All these efforts have led to swift growth in our user base and look forward to what the future holds. In addition to operational improvements, we are encouraged by the healthy recovery in consumer and settlement towards quality for videos as by historical high theatrical movie box office performance during the Chinese New Year.
This track reinforced our confidence in the quality long-form video content and we are optimistic for long-form video industry in the coming year. As we step into 2025, we aim to boost membership revenue the quality and the share of content.
We also aim to expand the advertising revenue by enlarging our app inventory, which will benefit from the growth of mini drama business. Together, these 2 elements will serve as the growth engine driving our revenue growth.
Now let's move on to the details of our core business segments. Starting with long-form videos, which is a cornerstone of our content ecosystem. We have sustained our leadership in the core drama capturing the highest total market share in Q4 and for the full year 2024 according to Enlightened Data.
This was underpinned the exceptional performance of our highly acclaimed titles across multiple gyros. In Q4, our dominance in the [indiscernible] remain unchallenged. Notably, we are become the 15th drama to break the iQIYI popularity index score of 10,000 and recorded the highest score of our platform in 2024.
Additionally, new releases like [indiscernible] brand and another [indiscernible] from viewers. Our exciting slate of offering goes beyond Q4, notably building our way from our flagship brand surpassed a popularity in [indiscernible] of 10,000 within just 6 days of its release.
It was also the first drama with episodes to reach such highs. In Q4, for premium female-oriented content, we made great progress in stabilizing our content release schedule and captivating audiences with [indiscernible].
Notable among this is Asian custom drama [indiscernible] which successfully attract new members setup in addition, modern drama, was praised for its innovative blend of suspense and romance hitting our peak iQIYI popularity index score of over 9,000.
Looking ahead, we are committed to further refining our production line up and release timing for both Asian customer dramas and modern tails that resounded with our female audiences.
Turning to movies. In Q4, we have maintained our leading position in viewership for [indiscernible] partners according to Enlightened Data. The performance was highlighted by our original production [indiscernible] which was the best-performing comedy movie on our platform this quarter.
[indiscernible] releases like [indiscernible] also secured top positions on iQIYI popularity chart during Q4. For animations in Q4, our production capabilities for Chinese animations continue to improve. The Legend of [indiscernible] remains as popularity among others. We also further boosted our offerings with new IPs such as [indiscernible] for Japanese animation [indiscernible] released [indiscernible] on our platform, receiving positive feedback.
Looking forward to 2025, we are dedicated to enhancing the production and the management of our long-form videos. Our primary goal is creating exceptional content, elevating as commercial potential while optimizing the production and the distribution process for increased efficiency. For dramas, we will focus on improving the pipeline capability and the share of our top-tier premium content.
We aim to strengthen our leadership in realistic and suspense while enhancing our premium content that appeals to female audiences, which have shown strong momentum. [indiscernible] such as drifting away, we are also going to release titles from like [indiscernible] including Breaking the Shadow, [indiscernible]
Our strong lineup also features highly anticipated female-oriented dramas, [indiscernible] have already been released and have gained strong traction among female audiences, while more compelling relates to come.
For our strategy is centered on [indiscernible]. We are committed to maximizing our commercial value of our classic IPs while exploring innovative new shows. For flagship multi-season IPs, our strong lineup includes [indiscernible].
We are also introducing several fresh new IPs, including the [indiscernible] in Asia, [indiscernible] Notably, The Blooming Journey was released in January and quickly received [indiscernible] of about 8,000 while topping the Enlightened rankings.
For the comedy [indiscernible]are building up the success of the [indiscernible] last year, we launched a spin-off show [indiscernible] during the Chinese New Year holiday, further strengthening the IPs interest.
For movies, premium is our top focus, especially original theatrical releases that can generate top box of its revenue. In 2025, our original movie Winter to Summer, [indiscernible] audiences can also enjoy theatrical hits on our move chain, including [indiscernible]
We also plan to increase our production capabilities for online films. In the field of animation, we are [indiscernible] collection offer [indiscernible] resources to a high-quality Chinese animation. Our objective is to both quality and the financial performance of operational work.
Major titles to be launched include [indiscernible] to be loved children's animation, including the [indiscernible]
Moving on to mini dramas. We achieved exciting milestones in just 3 months. Firstly, we have successfully revamped our app. Now the mini drama in the iQIYI main app focused primarily on subscription-based model, while the iQIYI lite app [indiscernible] free mini drama, supported by advertising model.
Secondly, we have largely completed the construction of back-end systems, especially for content recommendations and advertising capabilities. elevates the viewing experience, but also unlock fresh monetization opportunities.
Furthermore, our mini drama portfolio has quickly expanded to over 10,000 titles now, capturing 95% of the leading mini drama content providers in the market. This expensive and diversified content portfolio has paved for our next stage of development.
The program has likely increased our user base and the viewer time spend on mini dramas in the fourth quarter with these positive trends expected to continue. Notably, in December had its first mini drama generating mostly revenue income exceeded CNY 1 million.
As we enter the next phase, we are aiming to refine our products and service offerings with proven line recommendation fine tune our advertising system to appeal a broader base of new advertisers broaden our content catalog with fresh and library titles and cultivate iQIYI original mini drama ecosystem to provide a steady stream of high-quality content.
Moving on to membership services. Membership revenue in the first quarter was CNY 4.1 billion from annually and sequentially, primarily due to a lighter during the first 2 months of the quarter. However, starting from late November, we have observed a strong comeback in creating content offerings as previously discussed, driving a significant turn around in our membership business.
To be we have improved our long-form video content and introduced mini drama for members, aiming to improve member retention and attracting new subscribers. Additionally, we have maintained a tighter supply of premium content and stepped up our promotional efforts so subscribers can eagerly anticipate new releases, thereby driving their loyalty to our platform.
Beyond content enhancement, we have classified our membership offering into 2 primary categories. One category tailor for individuals, the other families. Both categories include and supporting basic service service tier as well as service tiers. Moreover, the family category also features our premium service which is the plan. This plan grants additional privileges, including unlimited access to express package that provide early access to finals of our premium content, the ability to log in on up to 8 supported devices and opportunities to participate in major offline events.
This classification benefits on membership business in multiway. One, it simplifies the structure of our membership plan, making their positioning clear. Two, it capture broder user needs and the user group from seeking individuals to those desiring more premium perks.
Three, it effectively addresses the issue of In the first quarter, to offer an improved solution to account sharing, we introduced the actual member feature. Additionally, our supported basic plan has seen a consistent uptick in subscription, especially among users in low-tier cities and within the young demographic throughout the quarter.
In a move to further elevate the value we offer, we also use a more joint membership options which gained traction with our members. Looking into 2025, our strategy focuses on building a membership business that better caters to mass audiences. They also intend to optimize member offerings, streamline operations and improve distribution channels. Moreover, we aim to elevate the iQIYI member brand and associate standards, ultimately boosting the value experience by our members.
Moving on to the advertising business. Revenue during the quarter came in at CNY 1.4 billion, growing 7% sequentially and showing a reduced rate of annual decline when compared to the ad revenue show double-digit sequential growth. This was primarily driven by the double-digit brand ad revenue growth generated by our premium dramas.
In 2025, we aim to evolve our brand advertising business by diversifying our revenue streams and exploring new innovative advertising opportunities. We plan to refine client service which will help retain our current and attack new comers from sectors like food and beverage, cosmetics and communications.
We will also keep an eye on emerging factors such as health care, home furnishing and tourism. Additionally, we aim to increase of top-tier clients and its core alternatives in mini dramas and advertiser customized shows. Performance ad continue to grow both annually and sequentially. This was largely driven by operational improvements on major e-commerce companies and the robust service provided to clients from Internet services sector.
Notably, revenue contribution and the e-commerce [indiscernible] shopping festival increased by over 40% annually and the revenue from the Internet services during the quarter increased by over 30% year-over-year. To sustain this momentum going forward, we are enhancing our technical and platform capabilities to secure a large a larger share of budgets from top-tier clients in sectors such as the e-commerce, Internet services and video game sectors.
We will continue leveraging AI for and the production and expand our client base to improve monetization efficiencies. We are also excited about the incremental and inventory that mini drama could bring in 2025.
Moving on to technology and products. We continue to advance the industrialization of the video business, thereby improving our operational efficiency. Our intelligent production management system has become essential for production crews managing various tax on-site, providing them with advanced production tools and management capabilities.
In the first quarter, we further enhanced the system to incorporate highly efficient production supply management capability. With regard to virtual production, we have increased the technology to push the boundary of content creation.
We are that. Our project and My Journey to You multiple prestige industry awards for their excellent use of virtual production. Meanwhile, we have made impressive progress with our digital asset collection. Throughout the year, we have assembled digital asset library from hundreds of dramas, shows, movies and animations.
It is recognized as one of the leading collections in China. We are now leveraging their assets in new video products and expanding into offline experiences. Looking forward, we are setting our sights on wider applications, including content creation, IP value-added services and immersive virtual reality experiences.
Moreover, we have been expanding AI applications content production and operations. AI's influence has been notably in refining our project assessment process providing valuable insights for 5,000 screen plays and novels. Additionally, AI design and customer selection as the project approval stage based on the character description from screen plays that streamlining the creative process.
Lastly, for our business performance in regions outside of Mainland China, we maintained solid performance in the first quarter, with both total revenues and membership services revenue gained annual and sequential growth, notably membership revenue from Hong Kong, U.K., Thailand and Australia grew by over 30% year-over-year.
The average daily number of subscribing members also increased both annually and sequentially with Hong Kong and Thailand growing over 40% year-over-year to 50% year-over-year.
The popularity of our original content continues to strengthen. of Fortune was a best-performing China drama on our overseas platform in 2024, with [indiscernible] version topping the viewership ranking in Thailand. Additionally, our first original overseas reality show its success beyond our platform, achieving top position in local Google rankings [indiscernible] Southeast Asian countries.
Furthermore, dramas have emerged as a popular content category on our international platform, ranking 2 only to dramas. Encouraged by this trend, we are planning to increase our investments in original production. We have been focusing on expanding our international brand recognition region-specific [indiscernible].
Last quarter, we launched our first ever conference overseas, which set a new benchmark as the most comprehensive and attempt press conference ever hosted by our Chinese platform in Thailand with exceptional artist participation. As we said, on 2025, our main focus abroad will be to drive revenue expansion.
We plan to enhance our drama offering and improve the monetization ability of region content. Having established our presence in Asia is Asia set to expand our footprint into Middle East, Latin America and Brazil.
Our approach includes reinforcing with telecom partners seeking innovative, collaborative opportunities and wrapping up marketing initiatives to boost our brand and content impact.
In summary, we closed the year by increasing a series of reinvention and innovation that successfully propelled our business setting a strong start to 2025. We are confident that the strong comeback of premium long-form videos, coupled with our continuous innovation in mini dramas as fuel engines during goals for 2025.
Now let me pass it on to Jun who will go through our financial performance.
Thank you, Mr. Gong, and hello, everyone. As Mr. Gong mentioned earlier, driven by the premium content, we have experienced a significant rebound in main operating performance in comparison to November 2024.
Now let's take a look at Q4 key numbers. In Q4, the total revenues were CNY 6.6 billion, down 14% annually. Membership services revenue reached CNY 4.1 billion, down 15% annually, primarily due to a lighter content slate. However, as Mr. Gong mentioned, premium content had a strong rebound from late November 2024 to now.
For online advertising, revenue decreased by 13% year-over-year to CNY 1.4 billion. This was primarily due to the decrease in brand advertisement business, partially offset by the growth in performance and business. Content distribution revenue reached CNY 406.6 million, down 20% annually, primarily due to a lower revenue from distribution of theatrical movies invested by GE and a decrease in other transactions, partially offset by increased revenue from cash transaction. Other revenues decreased by 10% annually to CNY 670.2 million.
Moving on to cost and expenses. Content cost was CNY 3.4 billion, down 9% annually, primarily driven by our improvement in the content strategy as well as a lighter content slate in the quarter. Total operating expenses were CNY 1.3 billion, down 5% annually, primarily due to disciplined marketing spending.
Turning to profits and cash flows. Non-GAAP operating income was CNY 405.9 million and its corresponding margin was 6%. Net cash provided by operating activities totaled CNY 519 million, positive for 11 consecutive quarters. As of the end of Q4, we had cash, cash equivalents, short-term investments and long-term restricted cash included in the prepayments and other assets around CNY 4.5 billion.
For detailed financial data, please refer to our press release on our IR website. Now I will open the floor for Q&A.
[Operator Instructions]. Your first question comes from Xueqing Zhang with CICC.
[Foreign Language] [Interpreted] We have noticed that I had launched many drama series since the beginning of this year. Looking ahead to 2025, what's your content pipeline about the quality of these titles? How many of them have the potential to become blockbusters?
Thank you, Jatin. We will invite our Chief Content Officer, Mr. Xiaohui Wang to answer this question. Go ahead.
[Foreign Language].
[Interpreted] We had a good start of the year for 2025 with the new season of the video theater drama testing away launched in January, reaching iQIYI popularity index of over 10,000 in just 6 days. It is a milestone for us because it is not only the first drama of the year to break the 10,000 in popularity, but it also is iQIYI's on the other and our first drama with limited number of episodes to achieve this milestone. Our main goal for this year 2025 is to intend both the quality and the share of our premium top long-form video content, also ensuring a greater stability and continued the strong start to the year.
[Foreign Language].
[Interpreted] In most -- the most critical areas such as the drama genre, the number of premium top-tier dramas claims for release this year was significantly increased compared to last year. We will also focus on creating a tighter narrative pace that better aligns with the current social sentiment and users embedded changes.
[Foreign Language].
[Interpreted] And then for suspense and drama and female-oriented content that our 2 main programming pillars, for this year, we will continue to maintain our absolute leading advantage in the sustained and genre and for this year, the theater has several works planned in addition to the already launched drifting away, there will be more releases, such as and
[Foreign Language].
[Interpreted] In terms of the female-oriented content and market season title, we will further strengthen our offering and continuous programming with launch titles such as the Best Thing, love in Fox Spirit Matchmaker, Sword and Beloved, A Dream Within a Dream, and The Strange Tale of Dynasty Season 3.
[Foreign Language].
[Interpreted] Additionally, we will continue to maintain our investment in the realistic genre. The pipeline includes What a Wonderful, [indiscernible].
[Foreign Language].
Thank you.
Your next question comes from Lei Zhang with Bank of America Securities.
[Foreign Language]. I want to know further updates on your mini drama area? And do we have any strategic plan on mini drama in 2025?
[Foreign Language].
[Interpreted] Our CEO is actually taking this question. He, first of all, would like to clear the definition of mini dramas that we've been talking about in his opening remarks. So for mini dramas, we identified them after vertical format And then this is the main area that we're focusing on. For the mini dramas, which is quite similar to the video content that we have the edge on, so this is something different.
[Foreign Language].
[Interpreted] So we decided to invest in the mini drama business about 1 quarter ago. The reason there are 2 aspects. First of all, right now, because the users are more to the fast pace content and they have a shorter attention spend, and then they also enjoy content in a more fragmented time look. So that's the first reason.
And also from the industry perspective and a market perspective, for 2024, the market size for many dramas, although there are different data that estimated by third parties, but we believe it should be greater than the Chinese office for 2024. For 2025, we are ramping some rebound of the the Chinese New Year. However, that we still think the mini drama market should still over exceed the Chinese box office in 2025.
[Foreign Language].
[Interpreted] Our mini drama business actually have successfully completed that we set for the first phase, achieving significant results in 3 areas for user product transformation, content portfolio and also building a [indiscernible] system development. Currently, actually, our mini drama content library has over 10,000 titles, and it has reached a that's comparable to the leading mini drama platforms in the industry.
[Foreign Language].
[Interpreted] There are 2 reasons how we achieved such a significant improvement in a very short amount of time. First of all, for our team, actually, we have a very mature, whether it's IT team, a technology team, product team also the operational team. All these have over 10 years for experiences, although mini drama is a new genre, but there are a lot of know-how that we can replicate from the long-form video experience. That's the first reason. .
The second reason is we have a very deep connection with the industry and also the industry resources, specifically for content providers for the industry most of them we have existing -- we have actually collaborated with them in the past or we have existing collaborations. So 2 reasons help us achieve such progress in short amount of time.
[Foreign Language].
[Interpreted] For our main [indiscernible] is still focusing on the long-form video content and then focusing on the subscriber-based revenue models.
[Foreign Language].
[Interpreted] For iQIYI lite, we have quickly presented app and then now is prioritized in 3 mini dramas, and then supported by the model.
[Foreign Language].
[Interpreted] In terms of the user time spend for the main iQIYI app, the mini drama account share now is actually to the sale of animation, carton and also
[Foreign Language].
[Interpreted] For iQIYI lite, the many drama time share and the second largest content drama only second behind long-form video content.
[Foreign Language].
[Interpreted] I'll quickly introduce the next stage, a key cap. The first one is we'll focus on introducing the leading drama titles and then for iQIYI. Second is to build the iQIYI original mini drama system. For the Chinese New Year period, actually, we have already launched quite a few titles.
[Foreign Language].
[Interpreted] And next 2 tasks are focusing to -- hopefully, we can increase the inventory of mini drama advertising and to enhance the monetization capabilities of mini drama, we would like to actually explore more advertising budget and also the new formats of advertising budget from the app space. Last, but not least, we will try to increase more investment in terms of user growth. Hopefully, we can attract more users to bring them to iQIYI to watch mini dramas. .
[Foreign Language].
[indiscernible]. Thank you.
Your next question comes from Lincoln Kong with Goldman Sachs.
[Foreign Language]. My question is about the membership business. So regarding the recent content performance and how is the impact from those measures like Star Diamond member extra content gives on those -- the impact on the membership business as well as the strategy for full year 2025.
Thank you, Lincoln, and I will invite Mr. Youqiao Duan, the Senior Vice President of Membership Business, who will take this question. Go ahead.
[Foreign Language].
[Interpreted] since late November 2024, the continuous programming of premium titles dramas have actually driven the membership business to a turning point, resulting in a significant increase in subscribing members. We actually rolled out several key initiatives for 2024.
[Foreign Language].
[Interpreted] We have reclassified our membership offering into 2 primary categories, one for individuals and for families. For individuals, there are actually 2 plans with no large-string access. And for families, there's 3 plans with large-string access. The membership rights and benefits are divided into 3 tiers: Basic, standard and premium. The new reclassified membership system actually allows users seeking either high cost effectiveness or premium benefits experience to find products that suite their needs.
[Foreign Language].
[Interpreted] Second, we strengthened the crackdown on password sharing, while introducing the actual account service as an authorized sharing solution effectively expanding the membership base and improving member retention.
[Foreign Language].
[Interpreted] The third point that we did was we enhanced the benefits for members. The newly added benefit for Diamond members, the limited complementary early access to the express packages that provide early access to of a premium content, increased value and perception of premium membership. After the launch of the new benefits, the number of S Diamond members have largely increased with most of the new members attracted by the Express package benefits and the existing S Diamond members have also been noticeably more active on the platform.
[Foreign Language].
[Interpreted] We have a few areas that we're focusing on for 2025. First, we'll continuously enhance the stability and continuity of our top care premium content programming and strengthening the prerelease promotion for upcoming content, establish mindshare among users to improve their loyalty to iQIYI.
[Foreign Language].
[Interpreted] Second, we'll build -- focusing on building a mass-market membership service to increase membership sales and revenue, while focusing on attracting new members will prioritize improving member retention and user engagement and also will increase the revenue scale and revenue share from external channels.
[Foreign Language].
[Interpreted] Third, we will systematically continue to optimize the membership product and operations including further refining the membership product system and pricing strategy, also membership benefits and for improving the member user experience and also crafting a membership model tailored for mini dramas.
[Foreign Language].
[Interpreted] The fourth, we will strengthen the quality of membership services and iQIYI brand, enhance the perception of membership benefits and privileges and also improve the overall net promoter score for iQIYI members. .
[Foreign Language].
Thank you.
Your next question comes from Maggie Ye with CLSA.
[Foreign Language]. Just now we heard about some encouraging performance in overseas markets in terms of both membership revenue and subscribing members. Could you please provide an update on the core strategy for our overseas business in 2025?
Thank you, Maggie. We'll invite Mr. Xianghua Yang, the Senior Vice President of our Overseas Business to take those questions. Go ahead.
[Foreign Language].
[Interpreted] The overall strategy for our business outside of Mainland China in 2025 is to pursue rapid revenue growth while maintaining profitability.
[Foreign Language].
[Interpreted] In the past few years, we have focused on several markets, including Southeast Asia, Hong Kong, Macau and North America and have achieved satisfactory development. And for 2025, we have set different strategies for different markets. .
[Foreign Language].
[Interpreted] For the markets we entered since the early days, such as Thailand, Malaysia and North America, our goal is to achieve both profit and revenue growth.
[Foreign Language].
[Interpreted] For the new explored markets such as Indonesia and South Korea, the focus is on revenue growth for 2025.
[Foreign Language].
[Interpreted] At the same time, we're also plenty and preparing for the long-term growth of our business, I hope to break into new markets in 2025, such as the Middle East, the Spanish-speaking Latin American region and also Brazil.
[Foreign Language].
[Interpreted] For content--wise, we will strengthen the programming dramas in 2025, and the contemplate is actually more suitable for the preferences of overseas viewers in 2025 compared to the content we launched last year.
[Foreign Language].
[Interpreted] In terms of local drama, local content, after years of efforts, we have actually simulated some experience that we'll continue to invest in markets such as Thailand and Malaysia, which will serve an important support for our user growth in the future.
[Foreign Language].
[Interpreted] For content promotion, advertising placement and also the collaboration with telecom carriers and other channels, our core methods of at least the content value, so in 2025, we will increase our investment in these areas and in more markets.
[Foreign Language].
[Interpreted] So overall speaking for 2024 for oversea business, in terms of the membership growth and also revenue also maintained a relatively high-speed growth. And since December 2024, with the ongoing month of high-quality content, the overall growth rate of our business has been even faster than 2024, so which gives us more confidence in the revenue growth for 2025.
That concludes our question-and-answer session. I'll now hand back to management for closing remarks.
Thank you, everyone, for participating in the call today. If you have any questions, don't hesitate to contact us. Thank you, and see you next quarter.
That does conclude our conference for today. Thank you for participating. You may now disconnect.